A payday advance is a type of loan. You are, in short, borrowing money from a lender right now to use for immediate needs that you will pay back through your next paycheck, usually within a few weeks of borrowing the money. You will also pay a set fee for borrowing the funds. It is that simple. However, there are many things that people do not realize about these loans that they should. Before you borrow, know what you are investing in.
Do You Believe the Myths?
The following are some of the most common myths associated with payday advance loans. Do you believe these?
- Borrowing money through a payday advance is expensive and even hundreds of dollars. This is not true. Most of the times these loans will offer a basic, low fee in order to borrow the money.
- You have to give the lender access to your checking account. That is not the case. In most cases, the lender is working with you and you will repay the funds directly to the lender.
- You have to earn a lot of money to borrow. Most of the time, the payday advance will be in an amount that is reflective of what you bring home with your paycheck. How much that is depends on how much you earned in the weeks prior to borrowing the funds.
- You have to have a credit check. This is one of the biggest misconceptions. In fact, one of the key benefits of these loans is that you do not have to have these credit checks and you do not have to have good credit.
- The process is long and hard to qualify for. In most cases, this is not true either. Those who obtain these loans can do so within a matter of minutes and repayment is within two to four weeks, therefore making the process even easier.
A payday advance can help you to pay your bills on time and limit your financial risk. The key to making them work for you is to choose the right lender and to ensure you know what to expect. You need to pay these loans back in full and on time. When you do so, you will save money overall and reduce any risks that you face. If you have questions regarding the use of these loans, ask about them through the lender you decide to work with. You can often find that there are very few reasons to avoid these loans.
A sudden emergency can put you into a tight financial spot, especially if it is still the middle of the month and you have little or no money in your account. It’s times like this when you need to reach out for a quick loan which shall make life a little easier, and help you carry over the immediate expense. A paycheck advance makes all the difference.
There are a few mandatory requirements which must be adhered to for an individual to qualify for one of these loans. Different companies may have other requirements added on to the basic requirements; however, the following three are common:
If you are seeking an advance on your earnings, you must have:
- an active checking account
- you must be suitably employed and earning a salary of not less than a thousand dollars per month and
- you must be above eighteen years of age.
Qualifying is determined by the amount of your take-home pay. Lenders work with the individual to determine how much they can reasonably be expected to pay back and still make the remainder of their obligations.
Loan amounts range from as little as $200 and can go upwards to $1500. Since the fee is based on how much is owed, it has to also be calculated into the ability to repay on time. Other fees that may apply is if you cannot meet the time frame for repayment and an extension becomes necessary.
You can apply for a loan online or over the phone, either way you need to give them some personal information, which lenders base their decision on. An online application requires you to fill out a form and send it off to the lender. You then receive confirmation of your application and when you can expect the amount to be in your account. If you call them, a representative asks you a few questions and you get a confirmation on the same call.
The speed at which a paycheck advance is approved is incredibly fast. It is designed this way so that it will be available to solve your problem and help you to meet your immediate expenses. The money is credited into your account within 24 hours of application.
All of the factors of a paycheck advance make them quite convenient and you can always negotiate with your lender on the amount and dates of pay back.
Payday advance loans are short term loans that are intended to cover borrowers’ expenses until their next paycheck. For this process, borrowers write a personal check equivalent to the amount borrowed plus the lenders fees and receive cash. The lender then hold the check until the agreed upon time when they cash it and the loan is repaid.
Advance loans may have received a bit of a stigma over recent years, but when the economy is tight and money is scarce, these loans provide an invaluable service to many who otherwise would have no other options available to them.
Borrowers can redeem the check by paying the loan in cash or pay the lenders charge and then roll the loan over for another pay period. But if the borrower’s account is short of funds to cover the loan, they may be faced with a bounced check fee from their bank in addition to the costs of the loan.
These loans may also accrue extra charges if the borrower rolls it over to extend the repayment period, or is unable to pay on time. The application process is very simple, requiring either to complete an application form online or by fax. From there the loan is transferred by direct deposit to the borrowers account. The loan repayment and the lenders fee is also electronically withdrawn from the borrowers account the next pay day.
Although most online payday advance loans lenders do not perform credit checks for loan approval, they may verify the borrower’s check writing or loan history from the national databases. These loans are beneficial because they keep you from borrowing more than you need to, and because even if you have a bad credit rating, you can still access them.
These loans also come in handy when you are faced by a serious financial crisis that can’t be ignored. Also, because of the fact that payday advance loans are short term, you are able to repay them without high interest fees as the repayment period is usually immediately after your paycheck. Just make sure, if you choose to go online and fill out the application form, you should ensure that you only choose a reputable site that is secure.
Sooner or later, you are bound to find yourself in the midst of a financial difficulty. Emergencies almost always seem to come about at an inopportune time. You may need money for an unexpected car repair or you may have a medical emergency and you don’t have the funds to cover it. Having access to a payday advance loan beats the alternative of hitting up your friends or family for the money.
This is a type of short-term loan that comes to your rescue in such situations. This is one reason why payday advances are getting more popular. These loans are available almost immediately to meet your needs and relieve you of worries. Your paycheck only stands as a guarantee to get the money. Even though it doesn’t matter how you spend the money, these loans should never be taken out unless they are for an emergency.
Another reason why these loans have gained in popularity is because they help individuals who might not have the credit history needed in order to qualify for a traditional loan. Banks have their set guidelines and are not able to bend the rules in order to give a loan. These loans fill the gap between a bank loan and nothing at all.
A payday advance is the easiest and quickest way you can have money in your hands in just one day for your emergency needs.
There are many companies that provide these loans and getting one is a very simple process. To qualify, you must be over 18 years, must be an American citizen, should have a $1000 dollars regular income and a have bank account to directly receive the loan amount.
You start by filling out a simple form to apply for the loan. The approval process is simple and short and faster than any other type of loan. Your information kept confidential since most of the lenders work online. It is quick and safe and the money is given to you without a credit check. They have simple repayment terms that are laid out for you in your contract. As long as you repay your payday advance within the specified terms, you are free to use the services again, if the need arises.
Have you ever found yourself unable to pay a bill on time, which resulted in a late charge? Are you currently facing an unexpected expenditure that you are unable to pay? If so, then a payday advance could be exactly what you are looking for.
Some Bills Can’t Wait Until Payday
Your monthly budget may be structured in a way that all of your living expenses take up your entire paycheck. With little to no room for a surplus, you can encounter a major problem when you have a bill that needs to be paid today.
A payday advance can be of great assistance, since you are able to obtain the funds right now. You can resolve your expenses without having to incur any other substantial fees or delays. The lender will withdraw the payoff amount, including interest, when you receive your paycheck. With a payday advance, you can alleviate the stress you may be experiencing over your financial situation.
Money In As Little As 1 Business Day
Lenders that offer a payday advance often have a streamlined loan process. Borrowers can complete an online application 24/7, which allows the lender to process your request faster. Once the loan has been approved, the funds can be direct-deposited into the borrower’s bank account as early as one business day. In certain cases, the transfer can be completed in as little as one hour. A short-term loan can be the ideal situation.
Less Stringent Requirements Than A Bank
Payday advance opportunities are associated with less stringent borrowing requirements. For instance, applicants must be at least 18 years of age, receive a steady paycheck or fixed income payment, and own an active bank account. With traditional loan products, you have to undergo a detailed underwriting process that often takes weeks to complete, which means that you will not gain access to the funds for quite some time. Payday loans are a better alternative.
Common Loan Terms
Individuals who are interested in a payday loan will find that they are able to borrow as little as $100 to as much as $1,500 at one time from 8 days to 31 days. Prior to completing the loan process, you will be made aware of the terms and conditions that are associated with the loan, such as payoff balance, APR, loan origination date, principal balance and repayment schedule. Once you receive your money, you can use the funds anyway you please.
There are a number of outlets and opportunities for you to look at when you are in need of payday advance loans. The question you will need to ask yourself however, is what am I going to do to when I get this money. Will I be able to resist the temptation to make it a regular habit. Is this really a way to help me, or am I simply relying on too much from too many places. In essence, if you are counting on money to come from one source to pay off another without you ever seeing or being able to use any of that money, you may be having a problem and it may be time to look into what you are doing to get into this position.
The money you need is right there for you to have as long as you are willing to sign on the line, many of the payday advance companies will give you all of the money you will need as long as it does not exceed the amount you are bringing in. Once you have the loan you need to remember when the money will be due and how it is you will be paying it back. In many instances you will have due date on your account that will coincide with the day you are supposed to be paid. This way you will remember about the money you borrowed and pay it back.
Once you have a payback date do not forget about it. This is because the payday advance you use will have a very high interest rate and it will increase with fees and penalties if the money is not turned in on time. This is the loan company’s way of protecting the investment they made in you.
Payday loans and quick loans are gaining more popularity in these days of uncertain economic times and rising prices. Though saving for the rainy day is the best option, expenditure can be more than what the savings can meet. This is where payday loans can be of help. Dealing with payday loan lenders and getting hold of a good deal is half the job done.
An Internet search for payday loan lenders throws up a good list. They are usually sorted by the state in which they operate. However, the list is likely to be large and confusing and it is important to choose the right lender.
How to Choose the Right Payday Loan lender
Listed below are some tips that you can keep in mind when choosing payday loan lenders.
- Check out their reputation by going through a few references. An Internet search shows up many money lenders offering payday loans.
- Ensure that the lender is licensed. It is also essential to check out if the lender is regulated by the state of your residence.
- Get information on the various loan products, the rates of interest, the terms of repayment, and the additional charges that are applicable.
- Some payday loan lenders take advantage by demanding sign-up fees. It is best to avoid such lenders.
- Check the loan qualification policy before accepting the loan deal.
The professional payday loan lenders do not take much time to go through the application papers, the verifications come through fast, with the result that the loans get sanctioned quickly. The very purpose of payday loans is lost if the verifications get delayed and if the money takes a long time to come in.
There are several payday loan lenders who take advantage of the situation and try to slap high rates of interest or other tough conditions. The loans are unsecured and the demand is high. Therefore, there is a good chance that manipulative payday loan lenders will choose to turn the situation to their favor. There is no obligation that you should choose a particular lender or a product. It can also happen that you end up dealing with very professional and knowledgeable payday loan lenders during your search. The first few companies that are listed in your search are likely to be the popular ones. It is worth checking out those payday loan lenders. Review sites also offer credible information about specific payday loan lenders.
Nowadays, some traditional lending institutions have also started offering payday loans. They have been trying to compete with the payday loan lenders by charging lower fees. They also offer additional services such as debt counseling and financial analysis in a bid to lure customers. However, traditional banks’ stringent norms and time delay for sanction of loans are a put-off for many would-be clients.
Payday loans are advantageous for many and help them meet quick cash needs. It is a good idea to opt for loans that have reasonable lending rates and have a sound repayment plan in place. Otherwise the debts can grow large and intimidating.